Internet porn king fined $2m

Amelia Bentley

The mastermind behind a SMS spam scheme that preyed on lonely hearts through dating websites has been fined $2 million.

Former porn site operator Scott Gregory Phillips was behind a Brisbane-based business which employed backpackers to create fake profiles on dating websites and send unsolicited text messages to victims.

Scott Phillips ... the first person in Australia to contest contraventions under the Spam Act.

The Federal Court in Brisbane heard the employees of IMP and its agent Jobspy Pty Ltd, obtained the mobile phone numbers of dating websites users before sending SMS texts such as: "Get laid, text your number to ...".

Thousands of people replied to the text and were charged up to $5. Some were also charged for texts they received.

The Australian Communications and Media Authority took action against Phillips for violations of the Spam Act and Trade Practices Act of Australia, for which the maximum penalty was $2.5 million.

Several others involved in the same company have already faced court and received fines of up to $3 million.

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However, Phillips became the first person in Australia to contest contraventions under the Spam Act, which was created in 2003.

Following a court hearing earlier this year, Justice John Logan last month found against Phillips ruling that he had been involved in the start-up of the scheme and controlled its operations from his home in Mt Nebo, in Brisbane's north.

He found Phillips was the mastermind of the business, which used "deception for profit", between December 2005 and April 2006.

"Phillips' involvement was at the most senior level ... it involved systematic and studied deception of those who use internet dating websites," he said.

The court was told the operation netted $140,000 over the 54 days Phillips was involved before he was jailed in April 2006 for criminal charges which included torture.

During the three-year period it operated, the company sent 1.8 million messages which brought in a revenue of $4 million.

Phillips' involvement was at the most senior level ... it involved systematic and studied deception of those who use internet dating websites

Justice Logan today said Phillips, who he found had lied during his evidence in the trial, would have left his victims humiliated.

"This conduct plays with a person's emotions, that is a factor I will take into account," he said.

Lawyers for the ACMA had argued Phillips was liable to a $2.3 million fine, saying such a penalty was required to stop him from being involved in such ventures again.

Joel Pittman, for Phillips, said there was no evidence any of the money made by the scheme had flowed to his client.

Justice Logan also imposed injunctions which prevent Phillips from similar conduct and, in particular, from setting up profiles other than his own on dating and social networking sites for the next seven years.

He also awarded the ACMA costs to be determined at a later date.

Phillips, who was not present in court today, has 28 days to pay the fine.